RETAIL BANKING Meaning and
Definition
-
Retail banking, also known as consumer banking or personal banking, refers to the financial services provided by banks to individual customers or consumers. It encompasses the activities and transactions aimed at meeting the banking needs of individuals rather than larger corporate entities or institutions.
In retail banking, banks offer a wide range of services and products to cater to the everyday financial requirements of consumers. This typically includes services such as savings and checking accounts, personal loans, mortgage loans, credit cards, and other consumer-oriented financial products. Retail banks serve as the primary interface between individual customers and the financial system, facilitating various banking operations and transactions for individuals.
Through retail banking, individuals can access and utilize banking services for everyday financial needs, such as managing their income, making payments, saving money, and obtaining loans or credit. Retail banks may also provide additional services like financial advisory, wealth management, insurance products, and investment opportunities tailored to suit the needs of their individual customers.
Retail banking often involves establishing and maintaining long-term relationships between the bank and its customers. Retail banks aim to build customer trust and loyalty through personalized services, convenient access to their accounts (both in-person and digital), and providing expertise on financial matters to help customers achieve their financial goals.
Overall, retail banking plays a vital role in meeting the financial needs of individuals, providing basic and specialized banking services and products to assist customers in managing and growing their personal finances.
Etymology of RETAIL BANKING
The term "retail banking" originates from the combination of the words "retail" and "banking".
The word "retail" comes from the Old French word "retaillier" which means "to cut again or piece out". It developed from the Latin word "reticulare" meaning to "piece out, distribute, or apportion". In the context of commerce, "retail" refers to the sale of products or services directly to individual consumers, typically in small quantities.
The term "banking" comes from the Old Italian word "banca" which means "bench" or "counter". This term was used because during the Renaissance period, moneylenders and financial transaction activities took place on benches or counters in the marketplace. Over time, "banking" came to represent the business of providing financial services, such as accepting deposits, issuing loans, and facilitating transactions.
